As an alternative financing practice: Saving based financing system and a cost comparison with department of participation banking

Economy and finance management has maintained its importance throughout the history of humanity, and especially in the globalizing world, the finance sector has become one of the dominant factors that dominate the changes in the last fifty years. Since the middle of the 20th century, Islamic Finance has been created as an alternative, basically trying to open a space where Muslims can continue their financial lives. For the development of Islamic finance, it is vital that the system diversifies and increases its products and services. In this context, the realization of applications other than Participation Banking, which constitutes the main backbone of Islamic finance, will benefit the development of Islamic Finance. In the research, firstly, the basic principles of Islamic finance were included and then the conceptual framework was stated by making definitions about both systems. Finally, a cost analysis was made by comparing the real costs incurred by a consumer as a result of choosing both systems in the purchase of a house. As a result, it has been found that the changes in the housing price index between the first time the system is entered in the Savings Finance System and the time until the targeted savings are achieved are an important factor in the cost. It has been concluded that it is more advantageous for the consumer to use financing from participation banking in proportion to the prolongation of this period.